Business Volatility: Insure What Keeps You Up at Night
Volatility can deplete business assets faster than you can react. Captive insurance lets you insure the very risks that make your business unpredictable.
"When you first start off trying to solve a problem, the first solutions you come up with are very complex, and most people stop there. But if you keep going, and live with the problem and peel more layers of the onion off, you can oftentimes arrive at some very elegant and simple solutions."
The Problem of Volatility
Volatility is a common problem for investors and business owners alike. Business is volatile, and that volatility can deplete assets faster than you can say "what happened?" So what is the solution?
For business owners, the answer is to insure it. The very measures that make businesses inconsistent or volatile may very well be the same risks to insure through your captive insurance company. These risks may be keeping you up at night. You may set aside profits "in case" something happens, or you may even insure some of these risks through a third-party insurer.
Identify Your Unique Risks
Each and every risk may be difficult to anticipate in frequency, yet coverage is available for almost every risk imaginable. The risks you identify are unique to your business. Threats may include loss of a key contract, regulatory change, cyber risk or data breach, rising insurance premiums, loss of a key employee, loss of income or business interruption, and over 65 other exposures. Since the 1950s, captive insurance has provided coverage for these risks.
The Major Difference
All insurance is designed to make the policy owner whole in the event a claim is made. As a business owner with captive insurance, you file a claim the same way you do with your local carrier. The major difference between traditional insurance and captive insurance is this:
You, the business owner, own your captive insurance company. Therefore premiums are paid to and retained by your company. Claims are paid from your company.
Insuring against potential losses reduces the chances of those risks harming your business. Volatility is reduced. Captive insurance is the key to security for business owners.
Call 720-213-0583 to reduce your business volatility.